Congressional Reform on Mutual Fund Industry Will Wait for SEC

Congress is unlikely to legislate reforms for U.S. mutual funds in this session and will count on regulators to respond to scandals in the $7.6-trillion industry, a top lawmaker said Tuesday.

The Securities and Exchange Commission is moving forward to require clearer disclosures, better governance and an end to abusive trading in the industry that manages the investments of half of all American households.

“I don’t think I will be disappointed in the final outcome of the SEC rulemaking. Frankly, that’s probably the way it should be,” Rep. Michael G. Oxley told Reuters.

The Ohio Republican chairs the House Financial Services Committee, which oversees the SEC. He said the committee must decide later whether to revisit the mutual fund issue in the next session after summer break.

“It depends on what the SEC does, but I have every expectation that they will close the circle on this,” he said.